The CFO of the Chinese co-living space rental said in an interview on IPO day Q&K looks to continue to make renting more affordable and accessible for millennials.
The Shanghai-based long-term apartment rental platform sold 2.7 million American depositary shares at $17 each. On debut day, shares in Q&K reached a peak of $19 per ADS intraday, then closed at $17.64 per ADS, up nearly 4%.
Q&K's IPO was secured by Morgan Stanley & Co. LLC and China International Capital Corp. Hong Kong Securities Ltd. The underwriters may purchase up to an additional 405,000 ADSs, according to the company's statement.
Jackie Qiang You, the Chief Financial Officer of Q&K, told CapitalWatch that China's young tenants deal with housing issues at home similar to those in the United States. It is difficult for China's youth to afford a home, You said in an interview on IPO day.
"The millennials are more mobile than the generations above them. They relocate to new cities, so they need an easy [process] to move in and reliable places that they can easily rent."
By converging apartments into efficient co-living spaces, Q&K aims to provide ready-to-move-in, affordable rental spaces, You said.
The company is very "selective" in building its apartment network, targeting cities that have sustaining jobs for young people, she added.
"One area that we differ from a lot of other players in our industry is that we don't pursue the number of cities just for the sake of the number." Q&K currently operates in six cities in China.
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